New Delhi: IIFL Finance, a prominent non-bank lender, has announced its plans to raise up to Rs 1,500 crore by issuing Non-Convertible Debentures (NCDs) in the debt market. The company aims to offer investors returns of up to 9 percent on their investments. The public issue for this debt raising endeavor is scheduled to launch on June 9. In a statement released on Tuesday, IIFL Finance, which is backed by Fairfax Holding and led by Prem Watsa, revealed that the proceeds from the issuance will be utilized to support business growth and enhance capital.
The primary issuance of secured redeemable NCDs amounts to Rs 300 crore. Additionally, there is a provision for a green-shoe option, enabling the company to retain over-subscription of up to Rs 1,200 crore. This totals the offering to Rs 1,500 crore, providing investors with a return of up to 9 percent over a 60-month tenure. The NCDs are also available for tenors of 24 months and 36 months. Kapish Jain, the group chief financial officer, stated that the interest on these bonds will be paid annually upon maturity, with a monthly payment option available for the 60-month tenure. He further added that the funds generated from this exercise will be utilized to meet the credit requirements of customers and expedite the company’s digital transformation, aiming to provide a seamless experience to its clients.
In April, IIFL Finance successfully repaid USD 400 million of dollar bonds that were issued in February 2020. The company is recognized as one of the largest financial services firms focused on retail customers and operates through a vast network of 4,000 branches. As of March 2023, its loan book amounted to Rs 64,638 crore, with 95 percent of it comprising retail loans.